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The week ahead sees investors focused on poor US economic numbers; Brexit is drawing ever closer for the UK with still no deal in sight, while in the Eurozone we will see a slew of critical manufacturing reports from governments. 

Any chance of a trade war breakthrough?

With the WTO clearing the ground for a US-Europe trade war, investors will be begging for some positive progress between Beijing and Washington.

US: markets focused on poor numbers

It is safe to say the markets are…concerned about the global economy. Consistently bad data from most of the world’s major economies, combined with the WTO’s tariff-greenlighting decision, sparked a nasty sell-off last week, and puts even greater pressure on the impending high profile talks between the US and China.

Of course, we have been here many times before at this point, the two superpowers previously coming close – but not close enough – to a trade deal, only to engage in a tit-for-tat episode of escalation. Things are feeling pretty precarious, both economically and politically, at the moment, so some positive chatter in the run up to, and aftermath of, the start of negotiations on Thursday could do wonders for the markets.

If investors can get past the bigger picture, it’s not the most thrilling week for data. The US PPI readings arrive on Tuesday, followed by the FOMC meeting minutes on Wednesday, the inflation numbers on Thursday and preliminary consumer sentiment estimates on Friday.

Another tricky week ahead for sterling

The October 31st Brexit deadline grows ever closer. The EU hasn’t been receptive to Boris Johnson’s border solution. Plus the Prime Minister wants to prorogue Parliament once again (to October 14th). Reason enough, then, for it to be another tricky week for the pound. And that’s before you layer on top the fears that Britain is entering a recession.

Investors will have a better idea of whether or not that’s the case following Thursday’s monthly GDP reading, which comes paired with the manufacturing and industrial production figures.

Eurozone braced for production numbers

The Eurozone has been responsible for a lot of the data stinking up the trading atmosphere of late – will that continue this week?

Monday has the region-wide Sentix investor confidence numbers, followed by the German industrial production, French trade balance and Italian retail sales readings on Tuesday; the German trade balance and French and Italian industrial production estimates on Thursday; and the German and French inflation figures on Friday.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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